City adopts budget, tax rate on initial reading

Doug McDonough, Plainview Herald

Updated 9:08 pm, Tuesday, September 12, 2017

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City adopts budget, tax rate on initial reading

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The Plainview City Council on Tuesday voted unanimously on first reading, with District 6 Representative John Gatica absent, to set the 2017-18 tax rate at $0.6312 per $100 valuation after earlier approving the 2017-18 budget.

But that decision had some added drama, with the council narrowly rejecting an effort lead by Mayor Pro Tem Charles Starnes to drop the tax rate to $0.6288 per $100 valuation – the current tax rate based on property valuations which have since declined. Joining Starnes in the unsuccessful effort to leave the rate unchanged were Council Members Teressa King and Susan Blackerby. Voting against that effort were Mayor Wendell Dunlap, Larry Williams, Norma Juarez and Oliver Aldape.

The adopted rate of $0.6312 is the effective tax rate – the amount necessary to raise the same tax revenue as the year before, not counting the $6 million in new construction during the past 12 months, which amounts to about $11,000 in new tax revenue.

According to City Manager Jeffrey Snyder, dropping the tax rate to $0.6288 would have added about $20,000 to the already projected budget deficit of approximately $115,000.

Starnes argued that despite adopting deficit budgets in recent years following Cargill’s closure in 2013, the city has ended each year in the black. “An additional $20,000 deficit is basically $1 for each of our citizens. I think we owe that to our citizens since we will soon be asking them to increase the levy on property taxes for some much needed capital improvements.” On Nov. 7, city voters will decide a $25 million bond election involving six separate proposals, including improvements to 24th Street, relocating the Police Department and City Hall, construction of a new fire station, replacement of the 16th Street swimming pool, upgrades and improvements to the baseball and softball parks and downtown streetscape improvements.

Although Starnes’ effort to reduce the tax rate was voted down Tuesday, he will have a second chance when the measure comes before the council for a final vote in two weeks.

The proposed budget calls for expenditures from the general fund of $13,472,250 against revenues of $13,354,830. Expenses from the capital improvement fund are projected at $640,000 with $1,158,975 from the economic development fund for the Plainview Industrial Park.

The council also approved on first reading the utilities budget, which reflects no change in the base water and sewer rates although there is a 5 percent increase in each step of the conservation rates. Snyder indicated that those changes will reflect about a 90 cent per month increase for most residential customers using 5,000 gallons of water each month. In other action Tuesday, council members:

--Authorized participation in the next round of TxDOT Aviation’s RAMP grants, normally used for routine maintenance at the Plainview/Hale County Airport. This year’s request will be for up to $50,000 which will be used to offset professional service expenses incurred related to an airport management study and acquisition of privately owned hangars and other facilities.

----Approved an addendum to the 3-year maintenance contract with DBT Transport Services for the automated weather observation system at the airport to reflect a business ownership change.

--Approved a resolution suspending the Xcel Energy 2017 rate request pending further study. The proposal includes an increase of 15 percent in base revenues.

--Approved an agreement with SPAG for administrative services on a grant the city is seeking for downtown street improvements, including ADA sidewalk improvements. That grant application is due Oct. 19.

--Selected Kimley-Horn & Associates to serve as the engineering firm on the downtown street improvement project, if the grant is approved.